Turk – Frightening Situation, The World Is On A Knife’s Edge

With continued volatility in global markets, today King World News interviewed James Turk out of Europe. Turk told KWN, “The world is on a knife’s edge.” He also stated, “Monetary history shows that currencies under political control are always destroyed — always. And the dire result is economic chaos.” Here is what Turk had to say about what he termed the, “frightening situation”: “Europe had its big meeting last week, and one conclusion is clear, Eric, Europe still has to learn that bailouts are not a solution. When a government or a bank, or any borrower for that matter, has too much debt — more debt than they can handle — adding more debt just worsens the problem. This ultimately has the effect of making the inevitable bust that much more difficult when it eventually arrives.”

James Turk continues:

“There are other serious problems here as well. For example, there are several countries in Europe, of which Germany is the largest, that want to pursue a monetary policy in which the euro maintains its purchasing power. They want to make sure the currency is not debased by inflation or other bad monetary steps, such as the ECB purchasing debt/bonds of countries, to enable those countries to fund their operating expenses.

In other words, this group of countries wants the euro to be managed like the deutsche mark was managed, which, after all, is what the rules of the eurozone provide. But these rules are being broken left and right, with the result being that the euro is just like all of the other fiat currencies around the world — completely at the mercy of politicians, and that is a frightening situation….